THE Nigerian Government, through the Nigerian National Petroleum Company Limited (NNPC), is exploring the supply of foreign crude oil to the Dangote Petroleum Refinery through international traders to sustain domestic refining.

Industry officials, however, say the move may not immediately lower petrol prices, as Nigerians continue to face rising fuel costs following recent price increases by the $20bn Lekki-based refinery.

Oil marketers confirmed that the refinery briefly suspended the loading of Premium Motor Spirit (PMS), sparking fears of another price hike. Gantry prices recently jumped from N774 to N995 per litre, with pump prices in some states now above N1,000 and reaching about N1,200 in some stations.

Global market pressures have also worsened the situation. Global oil prices surged past the $100 per barrel mark in early Asian trading on Monday, reaching their highest level in nearly four years as tensions around Iran intensified and Ayatollah Mojtaba Khamenei was named the country’s new supreme leader, Economy Post earlier reported.

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As of the morning trading session, West Texas Intermediate (WTI) crude was priced at $104.9 per barrel at 7.42an Nigerian time, gaining $14. Brent crude was also trading at $108.69, up $16.00 or 17.26 percent.

Sources within NNPC said the company is using its global trading network to secure third-party crude supplies for the Dangote refinery at competitive international rates to maintain refining operations.

The refinery noted that sourcing crude internationally may not immediately reduce petrol prices, stressing that global energy prices are rising due to geopolitical tensions.

Dangote refinery also said domestic crude supply remains limited. It receives about five cargoes monthly from NNPC instead of the 13 cargoes required under the naira-for-crude arrangement, forcing it to import crude at international prices.

Industry stakeholders say fully implementing the naira-for-crude policy could help reduce prices, though imported crude and global tensions remain major cost drivers.

“Dangote needs 14 cargoes of crude from the government under the naira-for-crude policy, for the refinery to meet its demands. If this is done, it will impact price locally, but as long as the refinery sources the majority of its feedstock from the United States and must bypass the Strait of Hormuz, they will transfer the cost to Nigerian customers,” The Punch quoted National Publicity Secretary of the Crude Oil Refinery Owners Association of Nigeria, Mr Eche Idoko, as saying.

Energy analysts also noted that limited import licences for petrol marketers have strengthened Dangote’s market influence, as most applicants seeking import permits this year were not approved.

Despite the pressures, analysts say the refinery has helped cushion the domestic market. Without local refining, petrol prices in Nigeria could have climbed as high as N1,500 per litre.

Meanwhile, the refinery has expanded its list of petroleum marketers allowed to lift products from 13 to more than 30 companies, including NIPCO Plc, MRS Oil Nigeria Plc, TotalEnergies Marketing Nigeria Plc and Conoil Plc, to improve distribution nationwide, The Punch reported.

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Tensions rattle markets

As Dangote Refinery struggles at home, geopolitical tensions also are also rattling financial markets. Futures tied to the S&P 500 and Nasdaq-100 both dropped by about 1.6 percent on Monday as investors reacted to rising energy prices and increased geopolitical risk.

Market participants are increasingly pricing in the possibility of extended supply disruptions, particularly if energy infrastructure or tanker routes in the Gulf become targets. Traders are closely monitoring whether the conflict will begin to affect production levels or exports from key oil-producing nations in the region.

The surge in crude prices has also pushed the U.S. dollar higher and reignited concerns about an energy-driven inflation shock, especially for countries that rely heavily on imported oil.